.- For our clients, we provide consultations with a tax attorney that handles over 300 foreigners legal & tax needs.

If you work 40 - 50 hours a week in a full-time W-2 job I'm not sure how this would create a conflict with claiming that you meet the 500-hour material participation rule provided you are completing the hours that count toward material participation. 

This could potentially meet your financial needs by itself as well as provide start up money to do flips or purchase buy and holds

#10)  The birds provide a free, natural alarm clock!

And that's how it can work to provide more then amply assignments, via public/private partnerships.

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

Additional DetailsI’m willing to invest in out-of-state properties, though I prefer areas with good property management options.My primary focus is passive income, but I’m also interested in value-add opportunities.I want to ensure these investments provide strong tax benefits and diversify my portfolio.I’d love to hear from experienced investors:What would you do in my position?

Buying through an agent may provide more transparency, while sheriff sales and auctions can offer deals but often come with risks, like limited property inspection or legal complications.

Tom, Based on what you've provided, if the property was held over one year, you'd be subject to the long term capital gains rates and any depreciation that you took on the property in the past would have to be "recaptured" (Added to your income) at the short term tax rates (but it will not exceed 25%). 

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.